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Topics: Construction
I have some problem about my chemical plant project.
I have some problem about my chemical plant project.

My project constructed the chemical plant that we hired sub-constructor for fabricate the special reactor (Mat'Stainless steel). It was inspected by owner and my QC at the shop before delivery to site. After it was at site owner and site engineer found rust around the welds. The owner rejected this equipment and they wanted my company to solve the problem by add flange instead weld at header and responsible for all cost. So, I have some question that who is the responsible for this situation? and How my company can manage this problem?

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Is it surface oxidation, or a structural safety issue? If it is simply surface oxidation, hit it with a wire brush or grinder and call it good.

Is there a contract that identifies acceptance criteria or standards for materials to be used?

If the welds are bad or if materials that rust should not have been used, and the subcontractor refuses to fix it, you may have to take legal action.
The sub-contractor should propose solutions, and get the client to agree on one before anything is done. Could be a waste of time, money.
Who is responsible is in your contract with you sub-contractor.
What did your client accept at the facilities before delivery?
I am not a machinist or have a lot of information when it comes to metallurgy. You didn't give a time frame of when the equipment was inspected and delivered. Was delivery within a week or 1 month of inspection?

As a customer i would think that a visual inspection would be enough but a QC person should know better that conditions could affect oxidation rate. I think the owner has a right to reject the equipment when it was delivered as it was not in the same condition as it was when he first saw it. If there was rust someone would have said something.

I am sorry to say this but your company is on the hook for fixing it. Now the solution that was proposed seems to be a change in design. Why wasn't a flanged connection used instead of a welded connection in the first place?

Lesson learned, work with your client and let them know before hand what can happen with each design option.

Now for your company solving the problem, you should negotiate the customer cover the cost of materials and your company pay for labor. If you can do that, it is a sort of win-win for every party and your project can move forward.

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